Stock Trade Software Advice For All Readers

The emergence and development of stock trade software to the levels of sophistication that it now occupies is something that must be welcomed by financial traders. But does this mean that anyone using such software in trading on the stock exchange can make money more easily?

Not surprisingly, there are dozens of stock trade software packages available, all claiming to be able to regularly select profitable trades. Just a search on Google for it gives at least 30 such packages out of the top ten results. A few are free but most carry a price tag of between $20 and $500.

Generally speaking, you get what you pay for. But there are exceptions. Many of the new generation of financial trading “robots” and software programs are amazingly advanced and very modestly priced.

Their ability to guide you in the direction of successful trades is paramount. Nonetheless, let’s take a brief look at what any stock trade software needs to include.

1. Scope of Data

As a serious financial trader, you need access to data covering all sections of the market, from company stocks to foreign exchange. Make sure that lesser known instruments such as Unit Trusts are included. All the companies listed in the stock exchange you trade on should be included in the data available. The “All Sectors” companies listed on the London Stock Exchange, for example, number nearly 8,500, and the number of instruments available to trade is nearly 22,000. And there are over 320 indices.

Unless you day trade, which personally I do not recommend, you do not need up to the minute data. The previous trading day’s closing prices are quite sufficient. (This will be welcome news as it invariably works out quite a bit cheaper.)

2. Depth of Data

Make sure the data you can obtain for any share, index, commodity or other financial instrument includes not only a price history going back years but also charts, with a facility to make your own simple moving averages, and news feeds. The latter is particularly important if you include fundamental analysis as well as technical analysis in your method of making trading decisions.

3. Reliability of Provider

Check out how long the provider of the software and service has been in the business. Find out what you can about the package and the provider from online forums and by doing a search on your favorite search engine. You’re looking for easy access to help and technical support by telephone and email, as well as recommendations for accuracy and integrity.

You’ll also want to satisfy yourself that you can understand the user guide and that it covers the program comprehensively. If there is a demo version of the software available then download and use that before deciding if the program is for you.

Get to know how to use the software thoroughly. And if you haven’t already done so, fill in the form on our home page and click Submit. That will be the most important thing you do all day.

Philip Gegan